FXCM Response to FXCM/PropFX Rating

[marketsurfer]

seriously, you guys are harsh. FXCM is the only FX company that has come onto elite DIRECTLY and HONESTLY addressing an issue. this should be applauded, not trashed

it's a huge step in the right direction for the FX industry.


Nicely done, FXCM.

regards,

surf

 

[squall]

ha ha yeah that is so benevolent of them to descend from on high to address the issue posted in this thread.

Yeah they are a bucket shop. Bucket shops make money off people by churning accounts. This is not some futures broker that is regulated, this is just a company that makes people feel "pro" and special with blinky lights and fancy gadgets so they will drop some dime into their accounts and get blown out.

I wouldn't touch FXCM with a ten foot pole. People fail to realize that fancy isn't always best.

I work as a mortgage originator with a Credit Union (which is not for profit) and so I am used to hearing the crazy stories from these asshole mortgage companies about ARMS and interest only loans, etc, which are the same things that caused this insane housing market problem in the first place.

I am used to hearing and having to compare and compete with those losers, and once you really break it down to people and inform them of the shady practices of the companies and what's behind the cutesy commercials, etc....they usually end up coming around.

Same thing here....usually the more fancy something is, the more they're trying to distract you from the truth.

For the record, I don't work on commission, I actually educate people on being intelligent with their finances on a salary basis.

The same concepts can be applied to forex...which is as equally shady as the mortgage industry...the same principles apply.

I personally stick with Oanda, because they pay me interest and I am more long term on my trades so the fluctuating spreads don't really bother me...but that is just me...I personally find simple to be the best.

edited by the moderators b/c of the context

Lucky Luciano said a long time ago that he wished he would have known earlier that it takes just as much brain power and effort to make a dishonest million as it does to make an honest million.

 

[grazia_s]

Yeah, first of all you are completely off topic - the topic is PropFX. Secondly, FXCM and many other firms also pay interest on positions. So your point about Oanda is completely out of place. You probably work for them and simply come on here to post against other market makers.

 

[squall]

Quote from grazia_s:

Yeah, first of all you are completely off topic - the topic is PropFX. Secondly, FXCM and many other firms also pay interest on positions. So your point about Oanda is completely out of place. You probably work for them and simply come on here to post against other market makers.

Funny how you gloss over the whole statement just to accuse me of working for Oanda. Hell no they piss me off too..they hold your money too long between deposits and withdrawals (to earn interest for themselves) but so far it seems the most reasonable for a place like Forex which is unregulated. Jesus man relax. Why the hell would I care where you trade.

 

[El OchoCinco]

Quote from FXCM Rep 1:



Let me start by apologizing for what seems to be an accurate description of FXCM's lack of quality customer service as it relates to the opening of this account and then the lack of service bbmat received when chatting with us to question the execution of one of his trades.

At least they are admitting they have no quality customer service lol

 

[grazia_s]

I didn't say where I trade. I don't think it's relevant. What is relevant is:

1. You are hotheaded and rude
2. You bring up a completely unrelated topic (interest) to this thread
3. You bring up an unrelated firm to this thread

And now you are angry because I called you out on it.

 

[squall]

Quote from Gaza_s:

I didn't say where I trade. I don't think it's relevant. What is relevant is:

1. You are hotheaded and rude
2. You bring up a completely unrelated topic (interest) to this thread
3. You bring up an unrelated firm to this thread

And now you are angry because I called you out on it.

I'm not hotheaded. Maybe I am rude, probably, but hell life's rude. I didn't "bring up" the topic of interest, I simply mentioned it as seriously about the only reason I chose my broker...it is simple and it pays interest..my main criteria....You make it sound like I was trying to hijack the thread or something. Don't make a mountain out of a molehill.

I guess maybe you are the "watchdog" of the forum and you "called me out" for being a Secret Oanda spy or something..but whatever. People are gonna hear (in this case read) what they want to.

I expressed my opinion on shady forex brokers. If you don't like it that's fine, say what you want. I really don't care.

 

[squall]

Quote from grazia_s:

And now you are angry because I called you out on it.

Angry!!?? Gaza, my friend...trader's don't get ANGRY! We are all emotionless robots and we trade because Gods favor us to win.....you obviously must only papertrade because everyone knows real traders...nay, ELITE traders don't get angry.

But seriously, why would I get angry over a post on a forum that's simply about discussion? Strongly opinionated, yes....angry? No. This is just virtual discussion. I don't know you or anyone here, and therefore do not hold your opinions in regard whatsoever, and I hope that everyone here is the same. This is all entertainment. Period. No need to be angry man.

 

[FXCM Rep 1]

Quote from Lon Eagle:

I am very interested in this point. Can you therefore confirm that no adjustment is ever made to the price feeds that are received by your platform from the banks.

FXCM is not a market maker on the Propfx platform which means that we do not provide a price stream to the platform. FXCM earns revenue by receiving a fixed rebate from the banks that provide prices on the platform for the order flow that our clients trade on the platform. So in this sense yes the interbank price is "adjusted" meaning that FXCM's revenue for offering the product is built into the spreads offered by the banks.

I am assuming however that your question is related not to the above but to adjusting prices so that traders are executed at prices that are considered off market. As FXCM is not a price provider on the Propfx Platform there is no way for FXCM to earn additional revenue by doing this.

The Propfx platform shows the best bid and offer from 11 top tier banks. Technically the banks which provide prices on this platform can put through whatever "adjusted" price they want. As the platform executes trades based on the best bid and offer however if a bank is not the inside price, then a traders stop for instance would not be affected by that price.


This platform works similarly to level II equities trading platforms which show the prices and liquidity offered by different market makers and allow traders to trade with those market makers directly. Like level II equities trading it is recommended only for more experienced traders.

Sincerely,

David Waring
Managing Director
FX Business Development
Forex Capital Markets LLC
32 Old Slip, 10th Floor
New York, NY 10005
Tel (212) 897-7660
Fax (212) 897-7669
Email: dwaring@fxcm.com

 

[Lon Eagle]

Quote from FXCM Rep 1:

FXCM is not a market maker on the Propfx platform which means that we do not provide a price stream to the platform. FXCM earns revenue by receiving a fixed rebate from the banks that provide prices on the platform for the order flow that our clients trade on the platform. So in this sense yes the interbank price is "adjusted" meaning that FXCM's revenue for offering the product is built into the spreads offered by the banks.

I am assuming however that your question is related not to the above but to adjusting prices so that traders are executed at prices that are considered off market. As FXCM is not a price provider on the Propfx Platform there is no way for FXCM to earn additional revenue by doing this.

The Propfx platform shows the best bid and offer from 11 top tier banks. Technically the banks which provide prices on this platform can put through whatever "adjusted" price they want. As the platform executes trades based on the best bid and offer however if a bank is not the inside price, then a traders stop for instance would not be affected by that price.


This platform works similarly to level II equities trading platforms which show the prices and liquidity offered by different market makers and allow traders to trade with those market makers directly. Like level II equities trading it is recommended only for more experienced traders.

Sincerely,

David Waring
Managing Director
FX Business Development
Forex Capital Markets LLC
32 Old Slip, 10th Floor
New York, NY 10005
Tel (212) 897-7660
Fax (212) 897-7669
Email: dwaring@fxcm.com

I really appreciate your answer and perhaps I have misunderstood in the past.

However as I understood it say the banks were quoting 1.9921/1.9922 in cable then the price on the prop platform might be 20/23 with the difference being the FXCM brokerage. After all no one expects FXCM not to earn income from the service. But are you saying I am wrong and FXCM never adjusts the price and you do replicate the prices you are streamed exactly and your revenue comes purely from the banks, rebating you a % of say turnover?